TIM is reportedly going to decide on KKR bid by mid-March

A special committee within the artist formerly known as Telecoms Italia is expected to make a call on the KKR takeover bid by mid-March, a source has told Reuters.

Reuters reports that a ‘source close to the matter’ has claimed a special committee within TIM is expected to give its verdict on the KKR bid by mid-March, once investors and markets have had a chance to discuss an alternative plan put forward by new chief exec Pietro Labriola.

TIM’s board of directors charged Labriola with examining more options for the future of its infrastructure assets in late January. KKR’s bid includes TIM’s network, but there are questions as to whether the government would consider allowing a strategic national asset to change hands. On top of this, KKR is already a shareholder in TIM’s FiberCop project, which seeks to roll out full fibre in Italy and there is a possibility it will merge with Open Fiber, the state-owned fibre builder.

The saga as to the future ownership of the Italian operator group has been going on for many months now and has led to numerous personnel shifts within TIM’s leadership. Private equity firm KKR launched the €0.505 per share takeover bid that values it at €10.79 billion in November 2021. Add in TIM’s net debt, and that valuation jumps to €32.95 billion.

It’s a complicated situation that has been rolling on for months. The decision in mid-March – if it happens – should finally provide some clarity as to which direction the firm intends to go.